Transition to Retirement: Run Your Own Race

“So you’re scared and you’re thinking that maybe we ain’t that young anymore. Show a little faith, there’s magic in the night.” Born to Run by Bruce Springsteen

My transition to retirement began officially in January 2024 after working full time for nearly forty-three years. I informed Greenleaf Trust about my intentions to retire in November 2022 so that there would be adequate time to hire and train my replacement including introductions to all of our clients. This lead time also allowed me to better mentally prepare for the transition. And, yes, I was scared because retirement is a clear sign that I am not that young anymore. In preparing for this transition, certain key themes became apparent.

• Need to run your own race
• Seek progress, not perfection
• Recognize where my heart is
• Avoid the hedonic treadmill
• Express gratitude daily

Run Your Own Race

I have been competing in races since 1973. With over fifty years of racing experience, I know that my best performances occurred when I prepared well and ran at a pace within my ability.

Everyone has different needs for retirement. Some people want to travel. Others want to remain active in their business or profession. Others want to take care of the needs of their family more fully after focusing so hard on their career for many, many years. So, I knew that our retirement had to match our needs rather than what people thought that we should do.

Seek Progress, Not Perfection

As my wife and I entered retirement, I knew that we would have many things to address including healthcare, updating estate plans, pension/retirement asset issues, home maintenance, becoming our own IT (information technology) department, vacation plans, and caring for our greyhound, Gracie. But we wanted to address these issues at a manageable pace rather than attempting to do everything at once or with rushed deadlines. A little progress every day helped to maintain positive momentum.

Recognize Where Your Heart Is

A key verse in the Bible for me is Matthew 6:21: “For where your treasure is, there will be your heart also.” This verse is key to how I want to spend my time. My wife, our dog, my brothers, and my friends need my attention, and I enjoy spending time with them. I still love competing and ran twenty races during my first year of retirement. I have several charities that I support including our church, my old high school (now called “Detroit Cristo Rey”), Michigan State University, the Pope Francis Center for the homeless, and the Michigan Humane Society (and other rescue groups). My love for the investment markets remains strong, and I am active with the CFA Society Detroit, serve on the investment committee for the Children’s Center of Detroit, and provide advice to people regarding their retirement portfolios and careers.

One of the best things about retirement is to be able to have lunch and dinner most days with my wife and to walk Gracie twice per day. After many years of long workdays including working lunches, it is nice to enjoy good food, conversation, and companionship.

Avoid the Hedonic Treadmill

The book, The Soul of Wealth, by Daniel Crosby provides many wonderful life lessons. In particular, Dr. Crosby warns about avoiding the hedonic treadmill where a person pursues more and more wealth and material goods but is never satisfied. He encourages people to be true to their values and to use their wealth to experience new things, spend on others, appreciate their health, bypass materialism, and fund life necessities. He discourages spending on things that we do not need to impress people that we do not even like.

Throughout this first year of retirement, we have actively made efforts to donate, share, or recycle items that we do not use or need. When we go to a store, we always ask ourselves if we really need an item. Or is it just a “feel good” purchase that will collect dust or otherwise complicate our lives? We are also very active in managing our health and healthcare coverage.

Express Gratitude Daily

One way that we try to appreciate retirement is by being grateful for what we have and the friends and family with which we have been blessed. We recognize that we are most fortunate to be able to retire. We are grateful for our health and for access to excellent healthcare when we do not feel so fine. We recognize that we do not have everything that we might want, but we are fortunate in many, many ways.

Summary

A key step to making a successful transition to retirement is to work with excellent advisors including an estate planning attorney, a strong CPA, and a wealth manager such as Greenleaf Trust. These firms can help with important tasks such as preparing estate planning documents, candidly discussing needs and goals, and preparing a sustainability analysis to evaluate potential spending levels. Access to such advice can provide tremendous peace of mind as a person moves forward with retirement. Life is a journey and seeking wisdom from others can help you tremendously. Remember to run your own race as you move forward!